Hong Kong’s Yuen Long and Tuen Mun to become next battlefield among developers
Yuen Long and Tuen Mun in Hong Kong will become the next battlefield among developers fighting for home buyers with about 6,000 new flats set for launch in the two districts.
Cheung Kong Property (CK Property), Sun Hung Kai Properties, Kerry Properties and Wheelock Properties are submitting their application for pre-sale consent.
“Today, the primary residential markets are very competitive as developers prefer fast asset turnover. They will release new projects once they secure the pre-sale consent even if the launches clash with their rivals,” said Kelvin Cheong, a director at Midland Realty’s New Territories.
He expects the activities in the secondary market will be frozen if these new projects are offered at “stunning low” prices.
Projects in the pipeline for pre-sale in Yuen Long include CK Property’s Yucci Square, where 1,129 units are on offer, and three SHKP developments. They are the 1,114-unit Grand Yoho Development; 1,027-unit Acappella, and the 523-unit Twin Regency.
In nearby Tuen Mun, Kerry Properties is expected to release a 1,100-unit project in So Kwun Wat called the Bloomsway.
Cheong said Midland has opened two new branches in Yuen Long to capitalise on the growing number of prospective buyers for the new project launches.
“We have deployed an additional 200 agents in the area to strengthen our market share,” he said.
But he said the number of transactions in Yuen Long have been dropping significantly as owners are not in a hurry to sell.
Average transaction prices at Yoho Town – a major housing estate in Yuen Long – eased 4.5 per cent to HK$12,000 per sq ft late last month from a month earlier, according to Centaline Property Agency.
“Most owners refused to offer bigger discounts as they prefer to hold instead of selling at low prices,” he said.